Sales Order Processing

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Sales Order Processing

Hong Kong Wellink Optical Ltd.
Sales Department
Hong Kong, China

Prepared by: Matthew Ho
Date: March 26, 2009

Executive Summary
The sales department of Hong Kong Wellink Optical Ltd. has been using the same sales order processing for the past two years. Due to the increasing sales volume, the former system no longer suits the business. A new design should be considered to separate a complex processes into simpler and more efficient sequences of work. A two-step approach is used to design a new sales order system. First, the basics that affect sales order processing are considered. They are * Cost behaviour

* Sales Process
* Order Process
* Optimal System Design
Then each topic is linked to the department’s cases to define the problems and they are * Time consuming communication with factory
* Lack of services
* Necessary of having a better monitor status of product system

This report recommends an investment in automation of processes involving a combination of human and machine contributions.

Contents
1Introduction1
2Analysis1
2.1Structure of Hong Kong Wellink2
2.2Understanding Cost Behaviour3
2.3Sales Process4
2.4Order Processing5
2.5Designing the Optimal System6
3Conclusions8
4Recommendations8
5References9

Introduction
Hong Kong Wellink Optical Ltd. is an eyeglass merchandising company. It has a partnership with a factory in China which provides goods for selling. In this century, information technology has been growing faster than ever. Every business is trying to keep the pace with information transfer by shortening their process time. HK Wellink is not an exception and the sales order process is in concern. The purpose of this report is to analyse and redesign a sales order process system suitable for HK Wellink. The study of the sales order process includes a redesign of material and work flow so that a complex process can be separated into simpler and more efficient sequences. An organization is just an arrangement of functions or activities. However, a well organization allows the combination of people in the work flow to work and think better than an individual can. An accounting and sales management point of view is be used the analysis. The major points of interest are sales structure of HK Wellink, cost behaviours, sales process, order process, and optimal system design. After analysing these major elements, there are conclusions regarding HK Wellink’s sales ordering process and the proposal of a new design as a recommendation. Analysis

This section discusses the structure of HK Wellink, cost behaviour, sales process, order process, and optimal system in this respective order. Each topic is viewed in an academic point of view, then connected to HK Wellink situation. Structure of Hong Kong Wellink

Hong Kong Wellink uses a linear organization. When an order is confirmed, the factory will receive the invoice. According to the priority of the order, workers begin their operations. When the work force finishes producing the items, the final products are sent directly from the factory. The order is fulfilled when the buyer receives a satisfying quality and quantity of products. Linear organization allows authority to flow directly from the chief executive officer (CEO). The CEO’s message is clearly passed down and it saves time. HK Wellink’s order process is straight forward. However, before a sales order is confirmed, the sales department must do an inconvenient step, check availability material and labour. During the sales process, HK Wellink is required to communicate with the factory back and forth. Hong Kong Wellink and the factory are in partnership. They are two different companies. At the factory position, the cost of production is confidential. At the HK Wellink position, the factory is confidential to the client, otherwise the client will order directly from the...
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